Derivative Financial Instruments

3 Months Ended

Jan. 31, 2021

Investments, All Other Investments [Abstract]

Derivative financial instruments

We operate internationally and enter into intercompany transactions denominated in foreign currencies. Consequently, we are subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Condensed Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended January 31, 2021, we recognized a net gain of $9,342 on foreign currency forward contracts and a realized net loss of $12,102 from the change in fair value of balance sheet positions. For the three months ended January 31, 2020, we recognized a net loss of $431 on foreign currency forward contracts and a net gain of $431 from the change in fair value of balance sheet positions.

The following table summarizes, by currency, the foreign currency forward contracts outstanding at January 31, 2021 and 2020:


	Notional Amounts
January 31, 2021 contract amounts:	Sell		Buy
Euro	$	122,414	$	270,516
British pound	20,206		60,579
Japanese yen	25,011		42,370
Australian dollar	193		9,255
Hong Kong dollar	60,949		88,915
Singapore dollar	204		16,983
Others	9,649		81,018
Total	$	238,626	$	569,636

	Notional Amounts
January 31, 2020 contract amounts:	Sell		Buy
Euro	$	227,292	$	118,275
British pound	18,934		54,818
Japanese yen	37,429		58,672
Australian dollar	345		7,817
Hong Kong dollar	643		152,452
Singapore dollar	1,109		15,987
Others	6,505		68,395
Total	$	292,257	$	476,416

We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these

counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the three months ended January 31, 2021 and 2020, there were no significant concentrations of credit risk.